Finance: Economic activity news in Portugal

Portuguese energy firm Galp posted net profits of nearly 1.5 billion euros for the first nine months of the year, averaging 5.4 million euros daily. Earnings were driven by crude production in Brazil reaching 131,000 barrels per day amid strong international oil prices. The financial results coincide with industry survey data showing that foreign investment into Portugal's renewable energy sector remains relatively steady despite broader European declines.

Applications to protect new inventions in Portugal rose by 36.8% during the first nine months of 2026, according to the National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial or INPI). Inventors submitted 1,093 applications between January and September, compared to 799 during the same period in 2025. The agency, which marks its 50th anniversary this year, reported that the growth follows a record total of 1,170 national filings recorded in 2025.

The Minister of Infrastructure acknowledged regulatory risks from competition authorities regarding Lufthansa's planned acquisition of a stake in TAP Air Portugal. European regulators could require the airline to surrender airport take-off and landing slots on routes where competition would be reduced following the German carrier's entry. Meanwhile, the government plans to prepare an initial public offering for the 5% TAP stake reserved for employees by early 2027.

Germany's Lufthansa is set to acquire a stake in Portuguese flag carrier TAP Air Portugal, beating out rival European airline groups. Portugal's Ministry of Finance (Ministério das Finanças) rejected claims that the carrier was being transferred without fair value, calling the allegations false. German officials stated alongside Portuguese counterparts that the investment will strengthen European aviation and create jobs.

The Portuguese government selected Germany's Lufthansa Group to acquire a minority stake in national airline TAP Air Portugal (Transportes Aéreos Portugueses). Under the privatization plan, Lufthansa will pay €1.2 billion for a 44.9% holding with an option to reach 49.9%, while the Portuguese state retains 50.1% of the shares with 5% reserved for airline workers. Lufthansa stated that the agreement will support TAP's expansion while safeguarding its brand identity and strategic flight routes to North and South America.

Update: Lufthansa to Pay Upfront Deposit for TAP Acquisition

Under the Council of Ministers' (Conselho de Ministros) resolution, Lufthansa must provide bank guarantees and pay an upfront deposit of 2.5%, amounting to up to €30 million, to the Portuguese state this year. Lufthansa Chief Executive Officer Carsten Spohr also confirmed plans to establish Lisbon as a primary European hub for flights to Brazil, routing transit traffic through the Portuguese capital instead of Frankfurt, Zurich, or Munich.

Update: German Union Criticizes Price as Diplomats Back Deal

German pilots' union Vereinigung Cockpit criticized Lufthansa for paying an exceptionally high price for TAP's minority stake, contrasting with Portuguese and German foreign ministers who praised the agreement as a geostrategic success. Portuguese Foreign Minister Paulo Rangel said the partnership strengthens transatlantic connections, particularly to Latin America.

German airline Lufthansa submitted an all-cash offer to acquire a 44.9% stake in TAP Air Portugal. The approach differs from rival bidder Air France-KLM, whose proposal included an option for the Portuguese state to swap its TAP holdings for shares in the Franco-Dutch carrier. The government is currently evaluating the competing bids as part of its plan to privatize the national airline.

The Confederation of Portuguese Business (Confederação Empresarial de Portugal or CIP) said planned defence spending could double the sector's workforce from 40,000 to 80,000 jobs over the next decade. CIP called on the government to ensure domestic companies participate in military contracts as Portugal prepares to invest €10 billion in defence. The business confederation estimated that half of the projected positions would require university degrees.

The Portuguese state injected €136 million into public holding company Parpública ahead of acquiring a larger stake in national energy grid operator Redes Energéticas Nacionais (REN). The capital increase occurred immediately before the presentation of the 2027 State Budget and paved the way to purchase a 5.32% share from insurer Fidelidade. The acquisition will raise total public ownership in REN to 19%.

Finance Minister Joaquim Miranda Sarmento defended the 2027 State Budget (Orçamento do Estado) against criticism from Bank of Portugal Governor Mário Centeno, who cited poor public expenditure management. The draft budget projects a surplus of €275 million and anticipates public debt will fall to 84.5% of gross domestic product. Miranda Sarmento warned that any opposition amendments from the Socialist Party (Partido Socialista or PS) or Chega creating a budget deficit would be unacceptable.

Social Democrat Rosa Sousa has been elected president of the General Union of Workers (União Geral de Trabalhadores or UGT), succeeding Lucinda Dâmaso, who had led the organization since 2013. Sousa secured 413 votes at the confederation's 15th congress in Figueira da Foz, where delegates also re-elected Mário Mourão as secretary-general. The congress noted that UGT currently represents about 430,000 affiliated workers across 50 unions, down by 5,000 members since 2022.

General Workers' Union (União Geral de Trabalhadores or UGT) Secretary-General Mário Mourão challenged Prime Minister Luís Montenegro to renegotiate national wage targets and raise the national minimum wage (salário mínimo nacional) to €1,000. Speaking at the union's congress, Mourão cautioned that any upcoming changes to labour law must reinforce collective bargaining rules. The government maintained that any wage revisions beyond existing targets require agreement among social partners in tripartite negotiations.

Update: Government Rejects Minimum Wage Increase Beyond €970

Minister of Labour Maria do Rosário Palma Ramalho rejected raising the minimum wage above €970 for the time being. Speaking at the UGT congress, she insisted that any modification to the proposed State Budget figure can only occur through a renegotiated tripartite agreement with social partners.

The European Union and China concluded an agreement to curb Chinese exports of electric and hybrid vehicles into the European single market. European Trade Commissioner Maroš Šefčovič said the pact addresses European trade imbalances and secures access to essential Chinese exports of rare earth elements. The deal follows months of negotiations over European tariffs on subsidized Chinese car manufacturing.

The privatization of flag carrier TAP Air Portugal will likely not conclude until 2028 due to an estimated 18 to 24 month regulatory review by European Union competition authorities. Finance Minister Joaquim Miranda Sarmento stated that the government will select the winning bidder this month, but revenue from the sale is excluded from the 2027 State Budget (Orçamento do Estado). The minister noted that proceeds from the airline sale will directly reduce public debt rather than alter the operating budget balance.

The government met with the Trade Union Federation of Public Administration (Federação dos Sindicatos da Administração Pública or FESAP) to open negotiations on civil service pay for 2027. FESAP secretary-general José Abraão asked the government to exceed the multi-year agreement, which currently schedules salary increases between 2.3% and 6.5%. The government did not commit to higher pay rises, postponing decisions until after discussions on the State Budget (Orçamento do Estado).

The space technology company Open Cosmos aims to launch a constellation of 192 satellites by 2030 to improve global connectivity. The first units of this low Earth orbit infrastructure are scheduled for launch later this year, with more than 96 expected to be in orbit by the end of 2028.

The General Workers' Union (União Geral de Trabalhadores or UGT) has officially approved its policy goals for 2026-2027, which include a demand for the national minimum wage to surpass 1,000 euros by January 2027. This target aims to exceed the 970-euro threshold previously established in the current tripartite agreement between the government, employers, and unions.

Portugal has submitted its tenth and final payment request for the Recovery and Resilience Plan (Plano de Recuperação e Resiliência or PRR) to the European Commission, totaling 4.672 billion euros. The Ministry of Economy and Territorial Cohesion confirmed that the country has reached 100% of its required milestones and targets for the European recovery fund. This final tranche concludes the global allocation of 21.905 billion euros assigned to Portugal.

More than 400 heavy vehicles are participating in a slow-moving protest today, traveling between Paredes and Coimbra along the A42, A41, and A1 motorways. Organized by earthmoving and transport companies, the demonstration aims to demand concrete government action regarding the rising cost of fuel, which has left the sector particularly vulnerable.

Minister of Defence Nuno Melo confirmed that the 3.9 billion euro acquisition of three Italian frigates will include 325 million euros in returns for the Portuguese national industry. The minister highlighted that 8.3% of the total investment will benefit domestic companies, including Tekever and Critical Software.

Diesel prices have reached a record average of 2.267 euros per litre, prompting the Minister of Environment and Energy, Maria da Graça Carvalho, to urge citizens to reduce energy consumption. Despite these historic costs, national fuel usage has continued to rise. The political opposition, including the Liberal Initiative (Iniciativa Liberal or IL), is now pressuring the government to fulfill a parliamentary recommendation to lower the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP).

The Portuguese retail group Jerónimo Martins, owner of the Biedronka supermarket chain in Poland, has been fined 121 million euros by the Polish competition regulator, UOKiK. The regulator alleges the company engaged in anti-competitive practices by colluding with transport firms to suppress driver wages. The company denies the allegations and plans to contest the decision in court.

SATA Holding has received eight expressions of interest regarding the privatisation of its subsidiary, Azores Airlines. The process involves the sale of at least 75% of the airline's share capital, with qualified parties expected to submit non-binding proposals by September 21, 2026.

The Portuguese state has officially purchased a 13.7% stake in Redes Energéticas Nacionais (REN) from the holding company of Amancio Ortega. The transaction, valued at 380 million euros, received prior approval from the Court of Auditors (Tribunal de Contas).

The government has approved a 12 million euro support package for winegrowers in the Douro region who are struggling to sell their production this season. Rui Paredes, president of the Casa do Douro, acknowledged that while the measure is not ideal, it represents the best possible solution under the current circumstances.

Minister of Agriculture and Fisheries José Manuel Fernandes announced that the government will provide financial support to winegrowers in the Douro region. This measure aims to assist producers struggling to sell grapes due to rising production costs, with further details expected to be released by the Prime Minister on Friday.

Companies reported 375 collective redundancies through July, a 13% increase compared to the same period last year. Data from the Directorate-General for Employment and Labour Relations (Direção-Geral do Emprego e das Relações de Trabalho or DGERT) indicates this is the highest level of workforce reductions since the pandemic year of 2020.

The Recovery and Resilience Plan (Plano de Recuperação e Resiliência or PRR) officially concludes this August, with the government confirming the full completion of the program. While the European funds provided a significant boost to the national economy, analysts note that the impact, though substantial, did not fundamentally transform the country's structural economic landscape.

Volkswagen Group CEO Oliver Blume has announced that the company is considering deeper restructuring measures, which could include closing four factories and cutting up to 100,000 jobs worldwide. Blume cited significant industry pressures, including the transition to electric mobility and geopolitical risks. While there is currently no indication that the Autoeuropa plant in Palmela will be affected, the announcement has triggered protests.

Portugal exported over 66 tonnes of medicinal cannabis in the first half of 2026, according to data from the National Authority of Medicines and Health Products (Infarmed). This figure represents more than 80% of the total volume exported during the entirety of the previous year.

The Portuguese government has acquired a 13.7% stake in the National Energy Network (Redes Energéticas Nacionais or REN) for 380 million euros. While the government cites national sovereignty and energy security as reasons for the move, critics argue the acquisition signals a return to state capitalism and lacks a clear economic rationale, given that the sector is already strictly regulated.

The Portuguese state has purchased a 13.7% stake in Redes Energéticas Nacionais (REN) from Pontegadea Inversiones through the state holding company Parpública. Prime Minister Luís Montenegro defended the acquisition as a strategic investment for national energy security, though the Portuguese Communist Party (Partido Comunista Português or PCP) has questioned the move's impact on state influence in the sector.

Secretary-General of the Socialist Party (PS) José Luís Carneiro launched a sharp critique of Prime Minister Luís Montenegro during the party's rentrée in Olhão. Carneiro questioned the government's strategic direction, specifically demanding transparency regarding the state's recent acquisition of a 13.7% stake in Redes Energéticas Nacionais (REN). He also announced that the PS will request a parliamentary review of the new organic law for the National Institute of Medical Emergency (INEM).

The Portuguese state is returning to the capital of the power-grid operator Redes Energéticas Nacionais (REN) by purchasing a 13.7% stake from the investment firm Pontegadea. The acquisition, handled by the state holding company Parpública, marks a strategic move to regain influence over national electricity and gas networks. Prime Minister Luís Montenegro described the investment as a way to protect national interests and manage energy costs.

Telecommunications operator Meo has secured an additional 250 million euros in funding. The company justified the move by citing insufficient cash flow to cover debt interest and lower productivity compared to market competitors, despite simultaneously planning a 30% reduction in its workforce.

A new fuel station operator called Nova has entered the Portuguese market, opening 15 locations in under ten months. Founder Ricardo Coimbra plans to reach 50 stations within three years and is currently targeting acquisitions of sites dissatisfied with the potential merger between Galp and Moeve.

The investment firm Apollo Global Management has reached an agreement to acquire the European low-cost airline EasyJet for approximately 6.6 billion euros. The deal follows the withdrawal of the competing bidder, Castlelake, which exited the process without providing a formal reason. This acquisition concludes months of uncertainty for the airline as the aviation sector navigates rising fuel costs.

The Portuguese Development Bank (Banco Português de Fomento or BPF) and the Mutual Guarantee Society (Sociedade de Garantia Mútua or SGM) have launched a new 1.5 billion euro financing line called 'Impulsar Portugal'. The initiative supports corporate treasury and investment with funding of up to 25 million euros per company. Applications are available through participating commercial banks and are divided into four pillars, including new business creation and technical guarantees.

The five largest banks in Portugal recorded combined profits exceeding 2.5 billion euros in the first half of 2026. While this figure represents a decline of more than 3% compared to the same period in 2025, banks like Santander, BPI, and Novo Banco saw individual profit drops exceeding 13%.

Novo Banco reported a 15.6% decline in net profits to 367.2 million euros for the first half of 2026. The bank attributed the decrease to extraordinary costs associated with its sale to the French group BPCE and a higher effective tax rate.

The Association for Economic and Social Development (Associação para o Desenvolvimento Económico or SEDES) has warned that the agreement between Galp and Moeve regarding the Sines refinery carries serious implications for Portugal. The association urged the government to use its sovereign powers to safeguard the refinery's viability, citing its role as a strategic national asset.

Portuguese companies have until December 31 to claim funds from the Labour Compensation Fund (Fundo de Compensação do Trabalho or FCT). As of June, 476.6 million euros remained unmobilized, representing 73% of the total funds available for training and severance support.

Several large Portuguese companies have released their first-half results for 2026, showing varied performance across sectors. While the utility company EDP and the bank Millennium BCP reported profit increases of 3% and 12.7% respectively, the retailer Jerónimo Martins and the industrial firm Corticeira Amorim saw their profits decline.

Air France-KLM and Lufthansa have submitted binding proposals to acquire a 49.9% stake in the Portuguese flag carrier, TAP Air Portugal. The state-owned holding company Parpública, which manages the government's business interests, will now evaluate the bids based on financial and strategic criteria before submitting a report to the government within 30 days.

Minister of Economy and Territorial Cohesion Manuel Castro Almeida has guaranteed that Portugal will fully invest all funds from the Recovery and Resilience Plan (RRP) by the August 31 deadline. Despite some pending milestones, the government is implementing an overbooking strategy to ensure no money is returned to Brussels.

The General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) is demanding an immediate increase of the national minimum wage to 1,050 euros. The union rejected postponing the discussion until 2027, citing the current economic reality faced by workers and the government's recent openness to reviewing wage policies.

The Portuguese government is moving forward with the 3.9 billion euro acquisition of three FREMM EVO frigates from the Italian company Fincantieri. While officials anticipate a significant return for the national economy, representatives from the domestic defence industry have expressed uncertainty regarding the extent of local participation in the project.

During a state visit to Cape Verde, the President of the Republic, António José Seguro, announced a 100 million euro credit line to support Portuguese companies investing in the archipelago. The initiative aims to strengthen bilateral economic cooperation, with a specific focus on innovation, the blue economy, and new business projects.

Former government ministers are urging action regarding the pending deal between Galp and Moeve, warning that Portugal risks losing control of its only oil refinery in Sines. Experts cited concerns over reduced market competition and potential costs to taxpayers if the sale proceeds without government oversight.

Update: Minister Luís Neves faces investigation over trailer case

Minister of Internal Administration Luís Neves is under scrutiny after the Judicial Police (Polícia Judiciária or PJ) found evidence of potential abuse of power and embezzlement. The investigation concerns the handover of a seized trailer to a contractor who previously held public contracts with the PJ, with Neves promising to gather documents to clarify the situation.

The Competition Authority (Autoridade da Concorrência or AdC) has recommended that the Bank of Portugal create a comparison tool for bank deposit interest rates. The AdC believes this measure would encourage customer mobility between financial institutions and improve market competition.